EXCLUSIVE - Pertamina, Petronas to sign gas sales draft contract next week

State oil and gas company Pertamina would sign the final draft contract for the supply of natural gas from the West Natuna area in South China Sea to Malaysian oil and gas company Petronas next week, a Pertamina senior official said on Thursday.

"I hope the Malaysian party can initial the draft contract on Sept. 14 (next Thursday)," Pertamina's director of exploration and production Gatot K. Wiroyudo told Petromindo.Com in Jakarta on the sidelines of the ceremony to sign the oil and gas cooperation agreement between the Indonesian and British governments.

Gatot said Pertamina offered three production sharing contracts operating in West Natuna that is American firm Conoco Inc, British firm Premier Oil and Canadian firm Gulf Indonesian Resources, to participate in the contract.

He noted however thus far only Conoco had been prepared to participate in the contract as it had certified its reserve.

"The three (contractors) (can participate in the contract) if they already have proven and certified gas reserve. Thus far, only Conoco has certified its gas reserve," Gatot said.

Gatot earlier said Pertamina planned to send between 250 and 300 million cubic feet of gas per day (MMCFD) to Petronas for 22 years.

He said the gas would be transmitted through pipelines from Conoco's Belanak (B) Block to Petronas' platform at the Duyung gas field, which is about 40 kilometers northwest of the West Natuna area. The gas will then be further transmitted to the Malaysian mainland.

Pertamina's officials said Petronas had long been supplying gas from the Duyung gas field, but the field's gas reserve has been running out.

Gatot said the government expected to receive between US$7 billion and $10 billion in revenue from the sales of the gas throughout the contract period. (alex)